Algeria’s appropriation bill for 2024 continues on track of prioritizing social peace at the expense of sustainability of public finances, auguring ill for the medium- and long-term macroeconomic balances of the country. The Algerian state will spend 38 billion dollars on its inflated public sector payroll, which takes the largest chunk of budget distribution. Civil service spending dwarfs by far the budget dedicated to public investments which is limited to 21 billion dollars in 2024. Tebboune and his military masters prefer to undermine Algeria’s medium term economic outlook for short term political gains. Increasing wages in a state-dominated and closed economy, will deepen Algeria’s budget deficit and worsen the scale of money printing leading to a surge in inflation and ultimately the erosion of Algeria’s social peace leading to a new cycle of unrest in the country.

Source: The North Africa Journal December 06, 2023 17:20 UTC